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Between legitimacy and cost: freedom of association and collective bargaining rights in global supply chains

Author

Listed:
  • Li, Chunyun
  • Kuruvilla, Sarosh
  • Bae, Jinsun

Abstract

Scholars and practitioners have advocated for freedom of association and collective bargaining (FOA/CB) rights as a key mechanism to improve labor compliance in global supply chains. Drawing on a longitudinal dataset comprising 6,500 Better Work audits across seven countries from 2015 to 2021, the authors compare violations of different FOA/CB elements to provide a general picture of the progress and problems of FOA/CB in supplier workplaces. They argue that suppliers are likely to selectively comply with FOA/CB elements that afford them some legitimacy, but violate the elements that impose significant costs to them. Specifically, they find fewer violations of union formation rights, in contrast to higher violations of union operation rights and of collective bargaining rights. Yet, when these latter rights are respected, they are associated with better compliance with other employment standards with effective collective bargaining having the strongest effect.

Suggested Citation

  • Li, Chunyun & Kuruvilla, Sarosh & Bae, Jinsun, 2024. "Between legitimacy and cost: freedom of association and collective bargaining rights in global supply chains," LSE Research Online Documents on Economics 125645, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:125645
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    File URL: http://eprints.lse.ac.uk/125645/
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    More about this item

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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